If you thought that the crypto markets were crazy, the NFT space is absolutely bewildering. What most thought would be a passing fad earlier this year is hotter than ever. People are quite literally making 1,000x returns on NFT collectibles that are barely a month old.
Now, the skeptic in me says: This is all hype and it’s going to cost investors a lot of crypto.
But the inquisitive me asks: Is there something more??
Well, that is exactly what I am going to cover today. I am going to be taking a deep dive into the NFT collectible space and analysing what they are and why they are perceived to have value.
I will also be going over some of the hottest collections in the space and giving me opinion on their long term potential.
This was a really interesting video to research and shoot, so I hope you guys enjoy watching it – right here.
📊 Portfolio Update 📊
Took some profit on my SOL, ADA & BTC allocation. I will be allocating some of this to UST and some to ATOM. The allocation to UST is because I think it’s important to start diversifying my stablecoin risk – more on this below
When it comes to my ATOM allocation, I think that it’s relatively undervalued compared to how fundamental Cosmos is to numerous different cryptocurrency projects & ecosystems – an updated video is coming in the next week or so.
There were no other changes in my portfolio this week. I may consider picking up an NFT or two but so far I am not entirely comfortable with their valuations. As usual, I will keep you updated in my Telegram Channel (the ONLY official one).
ETH 25.93% | BTC 20.75% | SOL 17.75% | DOT 7.10% | ADA 4.95% | PAXG 4.82% | USDC 4.68% | ATOM 3.21% | INJ 2.13% | RUNE 2.05% | UST 2% | AR 1.44% | LINK 1.18% | MATIC 1.11% | YFI 0.70% | LIT 0.20%
📈 Thoughts on Market 📈
Things are looking a bit shaky on the charts right now, and this is for a few reasons…
First, there’s the news that the US Treasury Department will soon be taking its first actions against stablecoin issuers, starting with Tether (USDT). This comes on the heels of the news that the Bank of International Settlements is pushing central banks to begin developing their own central bank digital currencies as a response to stablecoins and cryptocurrencies. Any punitive action against a stablecoin like Tether could have massive implications for the crypto space.
Luckily it looks like one crypto project is already stepping in to take on the role as crypto’s top stablecoin. Terra’s LUNA coin has been pumping even while the rest of the market slumps, and that’s because LUNA is used to collateralize the UST stablecoin.
When demand for UST rises, the price of LUNA responds in kind. If you pop open CoinMarketCap for UST, you can see its market cap has risen sharply, meaning boatloads of UST are being minted. If this confuses you, don’t worry. I’ll be doing an update about Terra this week and it will explain everything, including whether Terra could replace Tether and other stablecoins.
Second, US politicians are set to reveal the entirety of their upcoming 3.5 trillion human infrastructure bill. This is a different bill than the 1 trillion dollar infrastructure bill which contains that controversial tax reporting clause which could be damaging to crypto.
Besides the fact that the Treasury Department is also trying to sneak some anti crypto provisions into the second infrastructure bill, capital gains taxes could be doubled from 20% to 39% for wealthy Americans. Naturally, the practical effects of this would be a massive sell off across the board, and we’re already seeing the cracks starting to form in the stock market.
This brings me to the third point, and that’s the stock market. Some of you might have seen the news that Federal Reserve officials are planning on selling their stocks by the end of the month to “avoid a conflict of interest”.
This is of course in reference to the fact that the FED’s monetary policy has a massive effect on the stock market, and it seems that a few FED officials have been taking advantage of that to their gain.
As far as I can tell, a lot of traders are taking this as a sign that the Top is in for the stock market. I reckon that’s not a farfetched assumption to make. As we know, cryptocurrencies have become highly correlated with stocks and they would likely follow the stock market lower should we see a global crash.
While this may be disconcerting to many, it’s not all bad news. I’m particularly excited about Cardano which will be shipping its highly anticipated smart contract upgrade in a few hours. This will unlock the same DeFi features we find on Ethereum, Solana, and other cryptocurrencies.
ADA is probably rallying as you read this, but I do have a word of caution for anyone holding ADA…
As Charles Hoskinson himself noted, this release is more like an MVP (Minimum Viable Product), and there will likely be a few bugs and issues. So, don’t set your expectations too high. Don’t be discouraged by these shortcomings either. They will be addressed in future hard forks, as well as by the dApp developers themselves. I’ll be going over a few of the top projects building on Cardano this week, so stay tuned for that.
🙄 The SEC Sues Coinbase 🙄
Last week we got the news that the SEC was investigating Uniswap. However this week, we learned that they had far bigger targets in mind with their intention to sue Coinbase over their Coinbase Lend feature.
Now, despite what you think of Coinbase, the actions taken by the SEC here are really disappointing. This is because of the manner in which it was done. According to this blog post by their Chief Legal Officer, they have no idea why they are being sued – this despite their repeated efforts to engage with the SEC.
From the announcement, it appears that the SEC is viewing Coinbase Lend as offering unregistered securities. While the CLO of Coinbase makes a case for why it is not a security, the SEC is applying decades old cases (Howey & Reves) in order to come to that conclusion. I have talked about the Howey test on many occasions on my channel but it could be construed that products like Lend can be classified as securities. However, nothing can be done by Coinbase as the SEC is refusing to talk to them about it at all.
It’s quite unfortunate to hear this. Especially when Gary Gensler was himself asking those in the crypto space to come and engage with them. Moreover, given Gary’s background in teaching blockchain tech at MIT, one would have thought that he would have been more reasonable (or at least more engaged) with the community.
What I find most frustrating about this is that it seems as if these actions go against the explicit mission of the SEC and that is to protect retail investors. The Coinbase Lend feature would have given users the ability to safely earn 4% on their USDC. By restricting these users from earning that interest, they are forcing them to invest in money markets and bonds which have interest rates near zero – pathetic when you consider inflation.
It’s not just crypto lending that is a target. DeFi protocols have become increasingly wary of stepping on the toes of the SEC – so much so that they are excluding US users all together. We saw this recently with the DYDX airdrop that I talked about in my post here.
That was an airdrop. It was free crypto that users could have earned for using the protocol. Retail DeFi users in the US were not allowed to partake. However, those large VC funds and “accredited investors” sure did fill their pockets with the token allocation to the initial investors.
Was the SEC really protecting the retail investors? And, if they are merely following the law without consideration to consequences, should they really be applying an 80 year old case to it?
It will be interesting to see where we go from here. Coinbase seems like they intend to take the fight to the SEC. This could be a great outcome according to Mark Cuban as they have the resources and heft to do so. Smaller Defi builders and protocols don’t.
I also think that we have not seen the last of these lawsuits. Other centralised lending platforms in the US like BlockFi could be the next target (they have already been restricted in some states). The SEC could go after more Defi builders and lending platforms as well.
I seriously hope that going forward there is more guidance and less litigation.
🔝 Top Newbie Tips 🔝
Remember last week when I warned you guys about the risks of leverage trading?
Well, I wish that edition of the newsletter had found its way to every crypto holder…
Last week’s big drop was primarily due to liquidations on cryptocurrency exchanges. Overleveraged traders caused over 3 billion dollars of sell pressure for BTC, and that caused its price to flash crash down to 43k. Please guys, keep that leverage to a minimum, especially with all the uncertainty in the market.
These are some trying times to say the least. It feels like crypto could pump or dump at any second, and even the slightest deviation to the upside or downside could have you feeling the FOMO and FUD. As I’ve said before, when in doubt, zoom out.
No matter what happens in the near term, it’s quite clear where we’re headed in the long term. This is something that should calm your nerves, and if it hasn’t you’re probably overleveraged (invested too much). If you’re not overleveraged and are still stressed, consider checking out my video about how to deal with crypto stress.
One thing that I didn’t mention in that video is the stress that comes with being married to a project. I reckon it’s something I’ve discussed here before, but going all-in on a single crypto coin or token isn’t wise. It can really cloud your judgement about what’s going on with that project.
Moreover, if you use social media platforms to get information on said project, there is a risk you could be in an echo chamber. That is because the algorithms are designed to present you with the information that most conforms with content you like – in this case hype about a cryptocurrency.
This is especially relevant now that the market is looking weak. Your end game is to protect your gains, and some cryptos will take the dips worse than others. Ask yourself if yours is on that list. Hint: the smaller the market cap, the larger the loss you’re likely to see in the event of a dip.
Speaking of dips, some of you may be eager to see prices drop down to levels you were hoping to buy back in at. This is definitely a good mindset to have, but it can also lead to the risk of wanting to buy the very bottom. This is just as difficult if not more difficult than selling the top.
As I mentioned in my video about my top crypto trading strategy, I tend to pay attention to historical zones of price support, as well as my own percentage gains or losses. The latter can really come in handy when nothing on the charts makes sense, and that’s been the case a lot these days.
If you are dead set on buying the dip though, make sure to check out my video about it here. It could offer some help.
🔥 Deals of The Week 🔥
🌍 Rising Star of Crypto Exchanges: Ever wanted an exchange which gives you access to around 100 crypto assets, fiat deposits/withdrawals, a NFT marketplace and much, much more? Well, so do I and recently I’ve personally been using FTX as my go-to altcoin exchange of choice.
Those of you who want to have the option of trading on the go will be relieved to hear that FTX also has a top-notch mobile app too. So you’ll never miss out on another trading opportunity again!
Even better, I’ve actually been able to secure you guys a real special deal there. If you sign up to FTX then you’ll get your first $30 in trading fees for FREE! Once you have used and abused that bonus, then you’ll get a 10% trading fee discount for life!
👉 Want that deal? Sign up to FTX!
Need help getting started? Check out my dedicated walkthrough videos to learn everything you need to know!
FTX US guide: how to get started! 🇺🇸
💶 The Easiest Way To Buy Crypto With Fiat: Let’s face it, getting into crypto can be a massive learning curve for most. That’s why there is massive value in using an exchange that is super straight-forward to use.
Honestly, I have not found an easier way to get into crypto or to cashout than the Swissborg app. Indeed, I’ve had withdrawals hit my bank account in a matter of minutes – that’s not something that I see elsewhere very often.
Also, Swissborg offers access to a pretty solid selection of cryptocurrencies. That includes pretty much every major crypto asset, alongside more exotic plays like Aave, Compound and Utrust.
Oh yes, if you deposit €50+ on Swissborg you’ll also get up to €100 FREE in CHSB tokens. So yep, you might want to take advantage of that!
👉 Sign up to Swissborg & get up to €100 FREE!
🗞️ Crypto News Focus 🗞️
– Mark Cuban On Coinbase – Billionaire claims that SEC is trying to regulate Coinbase through litigation.
– Beginning Of The End For Western Union? – El Salvador’s new BTC wallets could cost Western Union and similar remittance companies $400 million per year!
– Hilarious Developments At SEC – US Security Exchange Commission is trying to block a motion from Ripple lawyers which could expose whether SEC employees traded XRP.
🔮 Video Pipeline 🔮
- Complete Kraken Review: Worth It?
- Terra Update: Where is LUNA Headed?
- Top Cardano projects to watch!
- Cosmos Update: Undervalued Smart Contracts?
- On Chain Analysis 101: What it is & How to use it?
- Ultimate Gemini Review: Best US Exchange?
🏆 What’s New At CoinBureau.com This Week? 🏆
✅ Top Crypto Bots: Are They Still Worth It?
✅ TrueFi Centralized Decentralized Finance – Is “CeDeFi” The Future of Crypto?
Now, that’s about all for this newsletter. However, I need to thank you guys for continuing to join me and my team on this crazy journey. I wake up and remind myself everyday that without your support, then the Coin Bureau would be nothing.
But that is why we’ll stop at nothing to continue raising our game and producing even better educational crypto content for you!
Anyhow, I hope you enjoy my latest video and have a great Sunday!
Guy your crypto guy